Leading risk assessment standards such as the NIST SP 800-39 and ISO 27005 state that information security risk assessment (ISRA) is one of the crucial stages in the risk-management process. It pinpoints current weaknesses and potential risks, the likelihood of their materializing, and their potential impact on the functionality of critical information systems such as advanced metering infrastructure (AMI). If the current security controls are insufficient, risk assessment helps with applying countermeasures and choosing risk-mitigation strategies to decrease the risk to a controllable level. Although studies have been conducted on risk assessment for AMI and smart grids, the scientific foundations for selecting and using an appropriate method are lacking, negatively impacting the credibility of the results. The main contribution of this work is identifying an appropriate ISRA method for AMI by aligning the risk assessment criteria for AMI systems with the ISRA methodologies’ characteristics. Consequently, this work makes three main contributions. First, it presents a comprehensive comparison of multiple ISRA methods, including OCTAVE Allegro (OA), CORAS, COBRA, and FAIR, based on a variety of input requirements, tool features, and the type of risk assessment method. Second, it explores the necessary conditions for carrying out a risk assessment for an AMI system. Third, these AMI risk assessment prerequisites are aligned with the capabilities of multiple ISRA approaches to identify the best ISRA method for AMI systems. The OA method is found to be the best-suited risk assessment method for AMI, and this outcome paves the way to standardizing this method for AMI risk assessment.

One of the current Internet of Things (IoT) systems emerging nowadays is the advanced metering infrastructure (AMI) system. The AMI system was intended to gather the electricity consumption customer’s data on electricity use before transmitting it to the electricity service providers (ESP) for processing, storage, and analysis. The AMI system faces new security challenges because of the integration of information and communication technology (ICT) with the conventional electric power grid. One precaution that can be utilized to raise the AMI system's security level is the risk assessment process. The risk assessment procedure is one measure that may be used to increase the security level of the AMI system. Our main contribution to this chapter is an evaluation of the present cybersecurity risks to the AMI system. By evaluating security risks, it is possible to identify the crucial assets that need to be protected and any potential vulnerabilities, threat probabilities, and ramifications. The risk matrix for the potential dangers is also set up to evaluate them and select the best risk management strategy. Nine risk scenarios have been discovered in this study concerning each AMI layer and component. The likelihood, impact, and risk degree for each scenario are also determined. A sample of a mitigation approach is put out to bring the risk level down to manageable. <!----> <!----> <!----> <!---->